Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

NorthWestern Corporation: Persistent Adverse Weather Isn't Slowing This Utility's Shares Down

Northern Plains electric and natural gas utility NorthWestern Corp. (NYSE:NWE) reported Q4 earnings that came in slightly below both revenue and EPS estimates as warm fall and winter temperatures across its multi-state service areas prompted low demand. This came after larger misses on both lines in Q3 as warm temperatures again resulted in low natural gas demand. The company's share price has shrugged off these underwhelming results, however, and is nearing an all-time high (see figure). Back in September I discussed the company's strong earnings growth and falling valuation but cautioned investors from initiating a long position, concluding that While it is tempting to recommend the company as a long investment on those grounds alone, potential investors should ...
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